Markets Continue Their Upward Swing
The markets opened sharply lower today, only to reverse and head higher. After ugly European PMI economic data and U.S. Jobless Claims that came in slightly worse than last week, the markets saw their first major red open in weeks. The SPDR S&P 500 ETF (NYSE:SPY) dropped down to $112.49 after closing yesterday at $113.42. No sooner did the markets make a brief mover lower, they then reversed sharply to the upside. At 10am ET, the markets were off their lows and more economic news was released. Leading Indicators were reported up 0.3%, slightly better than Wall Street expected. In addition, Existing Homes Sales came in better than expected, up over 7%. The markets shot higher. By 11:30am ET, the markets had turned higher for the day.
This bullish bias continues to be inbred in the markets for now. It must be respected. In addition, the dollar opened higher today but then fell off a cliff quickly. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) was trading at $23.23. That was a $0.09 move higher on the day. It has now fallen to $23.17, just $0.03 higher on the day. Always remember, the markets rally on a weak dollar or a dropping dollar. As you can see, the dollar fell off the highs, the markets rallied to the positive side.
The leading stocks continue to be Apple Inc. (NASDAQ:AAPL) and Amazon.com, Inc. (NASDAQ:AMZN), both making new 52 week highs today. The weakest leading stock continues to be Goldman Sachs Group, Inc. (NYSE:GS). This stock has had trouble catching a bid any of the last two weeks since it topped out at the daily 200 moving average. Join the Research Center to get more in depth analysis, guidance, swing trades and education.
Chief Market Strategist